Businesses who own commercial properties have only a few days before changes to capital allowances will make it more difficult to claim them.
It is estimated that there is over £1billion of unclaimed capital allowances in the UK. The new rules over capital allowances are set to come into force in April 2014 and will mainly affect those businesses which own commercial properties or those seeking to acquire a commercial property in the future.
The new rules will require businesses to identify (‘pool’) the available allowances and claim them in a tax return in the tax year that commercial properties are bought or sold (if not previously accounted for them). If they fail to, the unclaimed allowances are lost for the seller, the buyer and any future owner of the property.
David Baybut, partner and head of the Commercial Property team at Stephensons Solicitors LLP, said: “Capital allowances are an excellent relief for businesses when used correctly. While it cannot be claimed on all property-related purchases, it does apply to qualifying fixtures such as air conditioning systems, fitted kitchens, new electrical systems, lifts, some building management systems and much more.
“The new rules are particularly applicable to businesses that own commercial property but have not yet undertaken a review of capital allowances available on their property. Now is the time to carry out a review and ensure claims for capital allowances are made.
“For those who will make commercial property transactions after 1 April 2014, it is important for buyers to obtain full information about the capital allowances history of the property before they commit to the purchase. Failure to do so may lose valuable capital allowance relief and may even in the future devalue the property or make it less saleable.”
ENDS
Media information: Lianne Tracey and Chloe Kendall
Stephensons Solicitors LLP
Tel: 01616 966 229
Email: lct@stephensons.co.uk or cke@stephensons.co.uk